Alliance Resources shares spike 21% on grant of Four Mile Uranium mineral lease Friday, April 27, 2012 by Christine Feary
Alliance Resources (ASX: AGS) has been granted a 10 year mineral lease for the Four Mile Uranium Project in South Australia, sending the company’s share price 21.8% higher to close at A$0.39.
More than 5.7 million shares changed hands on the news.
The Four Mile project is the one of the highest grade and potentially most profitable mines in Australia with a rich endowment of 71 million pounds of contained uranium.
It has potential to be one of the largest producing and highest grade In-Situ-Recovery (ISR) mines in the world.
Alliance holds a 25% interest in Four Mile and has A$33.5 million in cash as of the end of the December 2011 quarter though it will not have to dip into this until a decision to mine is made thanks to a free carry by Quasar Resources (75%).
AGS Price at posting:
39.0¢ Sentiment: None Disclosure: Held
